Peloton stock tumbles following report it is halting production of its bike

Peloton’s stock fell more than 20% Thursday. The sharp drop came after CNBC reported that the company is pausing production of its less-expensive exercise bike for two months because of waning demand.

Peloton’s Bike retails for $1,495.

The news outlet says Peloton had already paused production on its other products, including the Bike+ and its treadmills.

Peloton saw massive success during the early days of the pandemic as many people were forced to exercise at home.

However, Peloton’s stock has lost 76% of its value in just over a year, CNN reports.

Beginning Jan. 31, Peloton will begin charging $250 to deliver and set up its original Bike. The fee was previously included in the price of the Bike.

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